Staging of Strategic Initiatives Assignment Example | Topics and Well Written Essays - 750 words

Staging of Strategic Initiatives - Assignment Example Consequently, strategic initiatives are bound by time, that is, time is specified for starting and completion of initiatives. The power of buyers dictates the number of sales that a firm makes. A firm has a large customer base if it uses giant retail outlets such as Wal-Mart. The store is a strategic distribution point since it is frequented by many buyers. However, this also implies that the buyers have immense power in dictating the success or failure of the firm. Thus, the buyers of Memorex flash drives have more power. Firms that are effective in reducing operational cost and also making products that look different from competitor’s products are better off than firms that implement cost leadership and differentiation separately. A differentiating firm is usually a step ahead in the market since customers tend to think theta the products are not close substitutes. This leads to more production at low costs, courtesy of economies of scale. Repeating the same task every time enhances the simplicity of the task. Consequently, an individual can understand various effects that can arise from a specific activity. This enhances the clarity and thus ability to be more productive. Repeatability enables a company to dedicate resources in new productive contexts, thus triggering more growth. A product loses value once new entrants impose substitutes on the market. The substitutes perform the same function as the original product, thus, purchase of one brand reduces sales of other substitutes. The market forces pull the prices down until an equilibrium price is achieved. This is the reason why the price of Laser teeth whitener fell from $500 to $100 upon introduction of other products that perform the same purpose. Espresso machines brew coffee and Starbucks roasts coffee beans and also makes a coffee beverage. However, the espresso process is automatic and involves pressurized  water mixing with coffee to produce the beverage.